A Conservative think tank report claims that raising the state pension age would help boost the economy.
The state pension age should be raised to 75 within the next 16 years to help boost the economy, according to a Conservative think tank.
The Centre for Social Justice (CSJ), headed by former Conservative party leader Iain Duncan Smith, has proposed the state pension age should rise to 70 by 2028 and 75 by 2035.
The influential think tank says that today’s older people are healthier than ever before and living for longer.
It argues that the UK is “not responding to the needs and potential of an ageing workforce”, with millions of people over 50 seen as “economically inactive”.
It says that an ageing society presents significant challenges to the UK economy, with greater demand for public services and increasing state pension costs raising questions about the “sustainability of our social security system”.
The Ageing Confidently: Supporting an ageing workforce report recommends helping older people to access the benefits of work through flexible working and increased access to training opportunities.
The current state pension age is due to increase to 67 by 2028, and to 68 by 2039.
The CSJ says that faster increases in pension age would reduce benefits costs and help boost the nation’s gross domestic product (GDP).
The think tank says: “Removing barriers for older people to remain in work has the potential to contribute greatly to the health of individuals and the affordability of public services.
“Therefore, this paper argues for significant improvements in the support for older workers. This includes improved healthcare support, increased access to flexible working, better opportunities for training, an employer-led ‘Mid-life MOT’ and the implementation of an ‘Age Confident’ scheme.”
Baroness Altmann, the Conservative peer and former pensions minister, was deeply critical of the proposals.
She tweeted: “This would be an utter disgrace. It must not happen. The concept of pension age is out of date and makes no allowance for those who can’t keep working.”
Andy Cook, chief executive of the CSJ, says: “Right now, we are not doing enough to help older people stay in work and the state pension age doesn’t even closely reflect healthy working life expectancy.
“By increasing the state pension age, we can help people stay in gainful and life-enhancing employment while also making a sound long-term financial decision.”
A Department for Work and Pensions spokesperson says: “Everyone’s state pension age is unique to them and in 2017 we raised the future retirement age to 68 so that it is sustainable now and for future generations. We’re creating opportunities for people of all generations with record employment.”
This article was first written and published by our sister magazine Moneywise.
laughable but laudable in a way
The thought that pension retirement age could be raised to 75 is appalling & no doubt Treasury is running its slide rules over this, as it could release more money for more daft PC oriented spending projects or fund HS2.
The main problem is of course AGEISM which is rife in the Uk and for which the government has done nothing to combat. (in terms of legislation & fines for malpractice)
What jobs are 65+ supposed to undertake (even professional qualified). Tutoring, stacking the shelves or Toilet cleaning ??
Its all very well for well connected Tory party policy proponents to cOme up with these HAIR BRAINED suggestions. Forward your CV to any Recruitment agency over 55 - let alone 65 and it will end up in one place (in the bin).
Until these issues are addressed - these proposals which are nothing more than a Treasury inspired wheeze to save money deserve the same response - IN THE BIN.
State pension age could rise to 75
Begs the question if older people are kept in employment till 75 how are the young going to find employment or does an economically inactive youth replace an economically inactive older generation.
Pension age rising to 70
Removing barriers for older people to remain in employment...there are no barriers except those in the police fire and forces...and whom are the calls for a raise coming from? It isn’t the public...this changing the retirement age continuously flies in the face of all the calls to plan for your retirement...how do you plan when the age keeps changing
Pensionable age to rise to 75?
Let's hope that Mr Duncan Smith does not wait till he's 75 before he retires.